The global fertilizer additives market was valued at $3.2 billion in 2020, and is projected to reach $4.7 billion by 2030, growing at a CAGR of 4.1% from 2021 to 2030.
Fertilizer additives are type of chemical additives that are incorporated with fertilizers such as urea, ammonium nitrate, calcium ammonium nitrate, and others in order to improve the quality of the fertilizers & provide stability. In addition, they also control the loss of nutrients in the soil and provide anticaking and anti-foaming characteristics to the fertilizer.
Additives are used with fertilizers to inhibit loss of nutrients such as nitrogen, phosphorus, potassium, and sulfur. Caking of fertilizers is a major problem being faced by farmers, retailers, and manufacturers, particularly during monsoon. Change in storage temperatures and pressure from storage conditions may result in deforming the surface of fertilizer, causing their new contact surfaces to experience adhesion from reduced water vapor pressure, which results in caking. Therefore, anticaking additives are actively deployed among fertilizers to prevent formation of lumps in fertilizers, which might degrade the quality of fertilizers. Furthermore, dust-binding property of anticaking additives makes them ideal across a wide spectrum of fertilizers such as in NP and NPK complex fertilizers. In addition, increased production of synthetic fertilizers on a commercial scale has been witnessed to enhance the crop yield and production. Therefore, introduction of suspension fertilizers majorly in American markets have led to major production of granular fertilizers suitable for home use blending. Moreover, recent advancements in fertilizer manufacturing include the time-release encapsulation, which means that the additives of the synthetic fertilizer get deep into the soil during a given period of time, thereby inhibiting over fertilization, thereby augmenting the global market growth.
However, chemical fertilizers are being produced on wide scale, as they serve as an effective way to cater to demands of increased world food production. However, rise in use of chemical fertilizers has resulted in contamination of ground water. Nitrogen fertilizers break down into nitrates and get deposited &travel easily through the soil. It remains in groundwater for a prolonged period, as it is water soluble. Thus, the addition of more nitrogen over the years has an accumulative effect. Extensive use of chemical fertilizers on crops has led to increase in incidence of diseases such as malaria, cholera, and others. This in turn has restricted the use of chemical fertilizers, with adoption of organic agriculture practices worldwide, which is likely to hamper the market growth.
On the contrary, nutrient management is an effective way of utilizing the crop nutrients to prevent over application of nutrients. It promotes efficient nutrient cycling on farms with minimal impact on the environment. Nutrients that are not effectively utilized by crops have the potential to leach into groundwater or enter nearby surface waters via overland runoff or subsurface agricultural drainage systems. Moreover, this method has witnessed enhanced applications owing to its property of reducing pollution by preventing the loss of nutrients through runoff into surface water and also inhibiting emissions into the air. This method has effectively optimized the use of on-farm nutrients and maintains soil health for successful crop production, which act as a lucrative opportunity for the growth of the market.
The fertilizer additives market analysis is done on the basis of form, type, application, and region. On the basis of form, the market is segmented into granular, prilled, and powdered. By type, the global fertilizer additives market is segmented into anti-caking agents, antifoam agents, dust control coatings, coloring agents, granulation aids, corrosion inhibitors, hydrophobic additive, and others. The applications covered in the report include urea, diammonium phosphate, ammonium nitrate, triple superphosphate, monoammonium phosphate, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The major companies profiled in this report include ArrMaz Products Inc., CHEMIPOL, S.A., Clariant AG, Emulchem, KAO Corporation, LignoStar, Michelman Inc., Novochem Group, Solvay, and Tolsa SA.
Fertilizer additives market, by region
The LAMEA fertilizer additives market size is projected to grow at the highest CAGR of 4.5% during the forecast period and accounted for60% of fertilizer additives market share in 2020. The growth of agricultural industries drives the demand for fertilizer additives in LAMEA. The main factors that supplement the market growth are developing economies, increase in investment in agricultural sector, use of modern technology in agriculture, and discovery of new applications of fertilizer additives. Global players have entered the market for catering to the increase in demand for fertilizer additives in LAMEA and exploit the opportunity in the emerging LAMEA market.
By Region
LAMEA would exhibit highest CAGR of 4.5% during 2021-2030.
Fertilizer additives market, by form
In 2020, the granular segment was the largest revenue generator, and is anticipated to grow at a CAGR of 4.3% during the forecast period. Granular fertilizers resemble a small grain or a particle. Some of the properties that determine the quality of the granule are particle size, particle density, bulk density, particle shape, crushing strength, flowability, and coefficient of friction. These properties help farmers evaluate the quality of the fertilizer. Furthermore, fertilizer additives are added to the granules for protecting the granules from external environment and to enhance their shelf life.
By Form
Granular form is the most lucrative segment
Fertilizer additives market, by type
In 2020, the anti-caking agent segment was the largest revenue generator, and is anticipated to grow at a CAGR of 4.6% during the forecast period. Anticaking agent is used as a fertilizer additive, which helps prevent the formation of lumps during storage. Owing to the formation of salt bridge and capillary adhesion, the caking process takes place in fertilizers during storage. There are various factors that lead to the formation of caking in fertilizers such as chemical composition of the fertilizer, moisture content, particle structure, temperature, pressure, storage time, and others. Controlled storage, better packaging, and addition of anticaking agent in fertilizers are the different methods used to prevent the caking process in fertilizers. The most effective one is the addition of anticaking agent. The anticaking agents are made of powerful surfactants, surface tension modifiers, parting agents, and crystal habit modifiers.
By Type
Anti Caking Agents type is the most lucrative segment
Fertilizer additives market, by application
In 2020, the urea segment was the largest revenue generator, and is anticipated to grow at a CAGR of 3.7% during the forecast period. Urea is a naturally occurring organic compound, which contains high amount of nitrogen. It can be synthesized in labs, which are called as synthetic urea and are widely used as nitrogen fertilizer across the world. It is one of the low cost fertilizers available in the market. The manufacturing process of urea takes place by combining ammonia and carbon dioxide. Both granulated urea and prilled urea is available in the market. Granulated urea is harder as compared to prilled urea, which creates less dust when transported and handled. The granules of urea are manufactured by passing the liquid urea through a fluid bed granulation system, which creates hard and evenly sized granule of urea.
By Application
Monoammonium phosphate application is the most lucrative segment
Impact Of Covid-19 On Global Fertilizer Additives Market
- The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The fertilizer additives market has little impact due to the wake of the COVID-19 pandemic, owing to the disruptions in the supply chain for various agrochemical products.
- According to a report published by the Organization for Economic Co-operation and Development (OECD), the decreased consumer demand has put downward pressure on the prices and production of fertilizer additives. Furthermore, to control the surge of novel coronavirus cases, there is a drastic shift of investments from other sectors towards healthcare.
- Also, several companies have either shut down or shrank their operations due to the risk of infection among the workforce. This has temporarily hampered the demand and supply chain of fertilizer additives. In addition, the falling income of customers has led contraction in the demand for fertilizers, pesticides, and other crop protection products among the small farmers amid the COVID-19 period.
- However, growing awareness related to health and sustainable development has surged farming activities during the COVID-19 pandemic which in turn has increased the demand for fertilizer additives in the agricultural sector.
- Furthermore, several fertilizer additives manufacturing companies have adopted safety strategies and techniques which in turn may increase the demand for fertilizer additives as the market starts stabilizing. According to an article published by AgriBusiness Global, the demand for agrochemical products in Russia rose by 20% in 2021 and is expected to further grow during the second quarter of the year.
- In addition, as the restrictions imposed due to lockdowns are being lifted, the fertilizer additives market is expected to recover soon owing to the record food grain production in both developed and developing economies.
Key benefits for stakeholders
- Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- It outlines the current fertilizer additives market trends and future estimations from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets.
- The major countries in the region have been mapped according to their individual revenue contribution to the regional market.
- The key drivers, restraints, and opportunities and their detailed impact analysis are explained in the study.
- The profiles of key players and their key strategic developments are enlisted in the report.
Fertilizer Additives Market Report Highlights
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Analyst Review
The global fertilizer additives market is expected to exhibit high growth potential in the coming years. Fertilizer additives play crucial role as they are capable of increasing granule-hardness of fertilizers and minimize the loss of essential nutrients such as phosphorus & potassium from the fertilizers that are essential for growth of crops. Maintaining fertilizer quality and effectiveness during rainy season is crucial and its quality may be hampered if they are not properly stored. Temperature plays vital role during the storage of manufactured fertilizers. Altering temperature conditions coupled with temperature change in rainy seasons leads to lump formation in the fertilizers. This in turn degrades the quality and effectiveness of these fertilizers that can eventually fail to improve the crop yield. Addition of fertilizer additives minimizes the risk of lump formation in the stored fertilizers. This factor is anticipated to drive the demand of the global market.
Fertilizers are vulnerable to contamination during blending and processing. Anti-dust fertilizer additives are capable of binding to the fertilizer surface and agglomerates dust particles, thereby limiting fertilizer contamination. Color plays crucial role in fertilizer industry as it increases the ease of fertilizer identification and boosts the opportunity of marketing fertilizer products. Coloring agents are another type of fertilizer additives that are added to improve product appearance and increase the user-friendliness. All these factors collectively drive the demand in the global market.
Rise in use of fertilizer additives for controlling cake formation and increased production of synthetic fertilizers on a commercial scale are the key factors boosting the fertilizer additives market growth.
The global fertilizer additives market was valued at $3.2 billion in 2020, and is projected to reach $4.7 billion by 2030, growing at a CAGR of 4.1% from 2021 to 2030.
ArrMaz Products Inc., CHEMIPOL, S.A., Clariant AG, KAO Corporation, Michelman Inc., Solvay, and Tolsa SA are the most established players of the global fertilizer additives market.
Urea application is projected to increase the demand for fertilizer additives Market.
The fertilizer additives market analysis is done on the basis of form, type, application, and region. On the basis of form, the market is segmented intogranular, prilled, and powdered. By type, the global fertilizer additives market is segmented into anti-caking agents, antifoam agents, dust control coatings, coloring agents, granulation aids, corrosion inhibitors, hydrophobic additive, and others. The applications covered in the report include urea, diammonium phosphate, ammonium nitrate, triple superphosphate, monoammonium phosphate, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Fertilizer additives play crucial role as they are capable of increasing granule-hardness of fertilizers and minimize the loss of essential nutrients such as phosphorus & potassium from the fertilizers that are essential for growth of crops. Maintaining fertilizer quality and effectiveness during rainy season is crucial and its quality may be hampered if they are not properly stored. Temperature plays vital role during the storage of manufactured fertilizers. Altering temperature conditions coupled with temperature change in rainy seasons leads to lump formation in the fertilizers. This in turn degrades the quality and effectiveness of these fertilizers that can eventually fail to improve the crop yield. Addition of fertilizer additives minimizes the risk of lump formation in the stored fertilizers. This factor is anticipated to drive the demand of the global market.
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